Prepaid value account with reversion to purchaser systems and methods

ABSTRACT

Systems, methods, and devices are described for a refundable prepaid transaction cards. The methods and systems include a prepaid transaction card funded with funds by a purchaser. Also included is an issuer. The issuer receives the funds a distributes a prepaid transaction card associated with the funds. The methods and systems also include a prepaid transaction card identifier, wherein the prepaid transaction card identifier identifies the prepaid transaction card. The issuer maintains a central computer system that stores at least one parameter entitling the purchaser to a refund of at least a portion of the funds. The methods and systems also include a cash pool, the cash pool holding at least a portion of the funds funded by the purchaser.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.13/300,278, filed Nov. 18, 2011, entitled “PREPAID VALUE ACCOUNT WITHREVERSION TO PURCHASER SYSTEMS AND METHODS,” which is a continuation ofU.S. patent application Ser. No. 12/500,345, filed Jul. 9, 2009,entitled “PREPAID VALUE ACCOUNT WITH REVERSION TO PURCHASER SYSTEMS ANDMETHODS.” The entire disclosures of the above applications are herebyincorporated by reference, for all purposes, as if fully set forthherein.

BACKGROUND OF THE INVENTION

Embodiments of the present invention relate in general to the use ofstored value cards. In particular, embodiments of the present inventionrelate to refundable stored value cards, with the option for withdrawalof cash at an agent location and the setting of restrictions on thestored value card by the purchaser. In many instances, this involves thesetting of a velocity limit on transactions.

In many instances, a person may wish to give to another or keep forherself a stored value card. Such a stored value card may serve manyuses: it may function as a gift towards purchases at a particularmerchant or a group of merchants, it may serve as an emergency source offunds, or it may be a way of providing an allocated amount of spendingto another, such as a parent providing a child with an allowance, or ason sending his family in another country money to subsist on.

A stored value card is typically offered by a merchant, a bank, or acredit card company. The stored value card typically may be used insimilar manner to cash at the locations that accept the stored valuecard. If the stored value card is associated with a credit card companysuch as VISA or AMERICAN EXPRESS, it may be accepted anywhere creditcards offered by these companies are accepted.

While stored value cards present advantages, a common drawback is that,once an amount of money has been added to a card, the amount is notnonrefundable. Consider the following example, if a father wishes toprovide his son with a $50 stored value card to a shoe store, he mayprovide the shoe store with $50 and receive a stored value card for thesame amount in exchange. The father may then give the stored value cardto his son with instructions to purchase appropriate footwear for thecoming Spring. The son, with the stored value card, may purchase a pairof baseball cleats for $39. After the purchase, the stored value cardwould have $11 remaining. If neither the son nor the father wishes touse the remaining $11 at the shoe store, it may remain unused for a longperiod of time, possibly never being used. Excluding an additionalpurchase at the shoe store, the funds on the stored value card may beuseless to the father and son. This remaining money may remain with themerchant or it may escheat to the state. The merchant may charge theaccount with a maintenance fee on a recurring basis, eventuallyresulting in a balance of zero dollars on the account associated withthe stored value account.

In another possible situation, a first person may wish to use a storedvalue card to issue another person (or himself) a recurring sum ofmoney, such as an allowance for recreation or to help with livingexpenses. The first person may wish to limit the types of items orservices the second person, who possesses the stored value card, maypurchase. The first person may wish to limit the second person's rate ofspending, the number of transactions, the locations of transactions, ormany other variables. Currently, the purchaser may not be able to placesuch limits or restrictions on the use of a stored value card. Rather,the second person may use the funds as she sees fit.

Further, if a person wishes to issue funds to another person on arecurring basis, she may be faced with the prospect of repeatedlypurchasing a stored value card and sending it to the desired recipient.Such a process may take time, waste resources, and cost money to sendvia mail. These drawbacks may be especially pronounced if the twopersons are located in different countries. Further, although the personmay wish to provide another with recurring funds for purchases, she mayalso wish to be able to restrict the items or services that may bepurchased with the funds. Repeatedly sending the recipient a storedvalue card may not allow for control over the goods or servicespurchased, especially in an international context.

Another restraint may be encountered by a person wishing to purchase astore value card for another: the stored value card may only be usablefor goods and services. A person may wish to send another person astored value card that may be used for both cash withdrawals and formaking purchases of goods and services. The invention described hereinserves to remedy these and other problems.

BRIEF SUMMARY OF THE INVENTION

In some embodiments, a refundable prepaid transaction card system ispresent. The system includes a prepaid transaction card. This prepaidtransaction card may be funded with funds by a purchaser. The system mayinclude an issuer. The issuer may be the distributor of the prepaidtransaction cards. The system may also include a prepaid transactioncard identifier. The prepaid transaction card identifier might identifythe prepaid transaction, and is provided to the purchaser. Thistransaction card identifier may allow the purchaser to obtain at least aportion of unused funds associated with the prepaid transaction cardwhen a parameter is triggered. The system further may include a centralcomputer system. The central computer system may be maintained by theissuer and stores parameters set by the purchaser as to how the prepaidtransaction card may be used. Finally, the system may include a cashpool. The cash pool may include at least a portion of the funds fundedby the purchaser to the prepaid transaction card. The cash pool may alsoinclude funds funded by the purchaser and a record of a plurality ofpurchasers and funds funded by the plurality of purchasers is stored atthe central computer system.

In some embodiments, the parameters set by the purchaser may include atime limit, after which the prepaid transaction card is inactivated.Other parameters may include a velocity limitation or a frequencylimitation. In some embodiments, a refund of funds may be distributed tothe purchaser upon at least one of the parameters being satisfied. Insome embodiments, the purchaser may receive the refund in cash at anissuer agent location.

In some embodiments, a method for completing financial transactions witha refundable prepaid transaction card is present. The method may includereceiving funds from a transaction card purchaser. A transaction cardmay then be dispensed to a user. A transaction card receipt may bedispensed to the purchaser. This receipt may identify the transactioncard. A set of rules for the transaction card may be received from thetransaction card purchaser. A record of the funds received from thepurchaser into a cash pool may be stored. A determination might be madethat at least one rule has been satisfied. Finally, at least a partialrefund of funds from the cash pool for funds associated with thetransaction card that were not spent by the user may be made.

In some embodiments, this method may further include receiving a debitrequest associated with the transaction card from a merchant. Adetermination may then be made of whether the debit request is inaccordance with at least one rule set by the user. Finally, an approvalmay be transmitted to the merchant.

In some embodiments, a notification of the debit request may be sent tothe purchaser. In some embodiments, the refund is issued to a thirdparty, such as a charity.

In some embodiments, a method for authorizing a transaction linked to anaccount may be present. The method includes receiving accountinformation from a funder to link with a transaction card. A set ofrules may be received at least partially governing the use of thetransaction card. A determination may be made that an approval requestcomplies with the set of rules at least partially governing the use ofthe transaction card. A request for funds from the account of the fundermay be made. In some embodiments, the method includes request approvalfrom the funder via a communication to a mobile device. A period of timethen may be waited for a response. A response may then be sent to themerchant.

BRIEF DESCRIPTION OF THE DRAWINGS

A further understanding of the nature and advantages of the presentinvention may be realized by reference to the following drawings. In theappended figures, similar components or features may have the samereference label. Further, various components of the same type may bedistinguished by following the reference label by a dash and a secondlabel that distinguishes among the similar components. If only the firstreference label is used in the specification, the description isapplicable to any one of the similar components having the same firstreference label irrespective of the second reference label.

FIG. 1 illustrates an embodiment of a system using a stored value card.

FIG. 2 illustrates an embodiment of a method for purchasing a storedvalue card.

FIG. 3 illustrates an embodiment of a method for purchasing a service orgoods with a stored value card.

FIG. 4 illustrates an embodiment of a method for issuing a refundassociated with a stored value card.

FIG. 5 illustrates an embodiment of a method for issuing a cash refundassociated with a stored value card.

FIG. 6 illustrates an embodiment of a method for contacting thepurchaser of a stored value card.

FIG. 7 illustrates an embodiment of a method of purchasing a debit card.

FIG. 8 illustrates an embodiment of a method of executing a transactionwith a debit card.

DETAILED DESCRIPTION OF THE INVENTION

Devices, systems, and methods are described for the implementation of anovel form of stored value cards. These stored value cards allow forgreater flexibility for a purchaser and user. The purchaser may placelimits or rules on the purchases made by the recipient. Further, thepurchaser may be able to get a refund on unused funds associated withthe stored value card. The purchaser may also be able to allow fordirect debit of funds from her account by a third party possessing atransaction card.

This description provides example embodiments only, and is not intendedto limit the scope, applicability, or configuration of the invention.Rather, the ensuing description of the embodiments will provide thoseskilled in the art with an enabling description for implementingembodiments of the invention. Various changes may be made in thefunction and arrangement of elements without departing from the spiritand scope of the invention.

Thus, various embodiments may omit, substitute, or add, variousprocedures or components as appropriate. For instance, it should beappreciated that in alternative embodiments, the methods may beperformed in an order different from that described, and that varioussteps may be added, omitted, or combined. Also, features described withrespect to certain embodiments may be combined in various otherembodiments. Different aspects and elements of the embodiments may becombined in a similar manner.

Stored value cards, often appearing in the form of gift cards to aparticular merchant or group of merchants, are seen by some people as apopular and convenient way of giving a present. Such stored value cardsmay serve a multitude of other purposes. For example, a stored valuecard may be used to provide an allowance to a child or friend, or may bea convenient way to send funds to a person in another country.Alternatively, a stored value card may be used by a person in place of acredit card if the person wishes to prepay for transactions.

Increased flexibility in how a stored value card functions would benefitthe purchaser of the stored value card, the issuer of the stored valuecard, and the user of the stored value card. The purchaser may wish togive a person an amount of money to spend at a particular merchant orgroup of merchants, but receive a refund for the unused portion of themoney after a period of time. A refundable stored value card may allow apurchaser to make such an arrangement. Further, a purchaser may wish toset particular restrictions on the use of the stored value card, such ashow much money may be spent from it in a given week and at whichmerchants. Allowing the purchaser to set certain limits or rulesassociated with the stored value card may allow such an arrangement.

FIG. 1 illustrates a possible embodiment of a system 100 using aconfigurable stored value card. In this embodiment, a purchaser 115interacts with one of a number of possible entities from which he canpurchase a stored value card. The purchaser may purchase the storedvalue card from a website 110, an agent location 125, a call center 165,a mobile device, or a merchant 180. If the purchaser purchases thestored value card on a website 110, the stored value card may be shippedto the purchaser 115 or may be mailed directly to a recipient chosen bythe purchaser 115. In some embodiments, no physical stored value card isprovided to the purchaser; instead a transaction number is provided tothe purchaser 115. This number may be used by the purchaser in a similarmanner as a store value card. For example, the transaction number may beused for making purchases via the Internet. The purchaser 115 may beprovided with the transaction number or it may be provided to anotheruser 160 directly.

If a purchaser purchases a stored value card via an agent location, hemay be provided with the stored value card immediately. The agentlocation 125 may represent a network of merchants who can communicatewith a central server system 135. These agent locations may have theability to receive payment in multiple forms. These forms may includecash, check, credit, and debit.

Another option that may be present for a purchaser 115 is a call center165. The call center 165 may receive or call potential purchasersregarding the purchase of a stored value card. The purchaser 115 wouldinform an employee at the call center 165 of the amount of money hewishes to have associated with the stored value card. Other informationhe may be required to provide would be the method of payment, which mayinclude instructions to pay at the nearest agent location 125, detailsabout the user 160, and other payment details.

A fourth possible option for a purchaser 115 is the purchase of a storedvalue card from a merchant 180. A merchant 180 may be a store or vendorthat sells a multitude of different products and/or services. Themerchant 180 may have a display with stored value cards representing avariety of different entities. The stored value cards sold by themerchant 180 may have a predetermined value associated with the storedvalue card. For example, a merchant may display a stored value card 180that has $20 printed on its face. The purchaser 115 would be required topay $20 to purchase this stored value card from the merchant 180.

A fifth possible option for a purchaser 115 may be the purchase of thestored value card via a mobile device 140. A purchase via a mobiledevice may proceed similar to a purchase via a website 110. The user maybe provided with a transaction number directly at her mobile device 140,or may have a stored value card shipped to her.

With each of these ways of purchasing a stored value card (including viaa website 110, an agent location 125, a call center 165, a merchant 180and a mobile device 140), the purchaser 115 may present certainrestrictions for the use of the stored value card. Depending on the modeof purchase, the purchaser 115 may be asked similar questions, but in adifferent form. For example, if the purchaser purchases the stored valuecard via a call center 165, questions regarding restrictions to beplaced on the card may be asked orally. If the purchaser 115 purchasesthe stored value card on a website 110, the questions may appear as texton a computer being used by the purchaser 115.

There are many possible restrictions that may be placed on the storedvalue card by the purchaser. For example, a purchaser could impose avelocity limit. A velocity limit may restrict the number of transactionsin a given amount of time, or the rate of transactions in a given amountof time. For example, despite there being $500 on a stored value card,the user 160 of the stored value card may be limited to a maximum of 5transactions using the stored value card. If each of these transactionsby the user 160 were only for $1, $495 would be remaining on the storedvalue card. The stored value card, now deactivated from use because ofthe velocity limit, may cause a refund to be issued to the purchaser115.

Besides a total number of transactions with the stored value card madeby the user 160 being limited, the number of transactions in a certaintime period may be limited. For example, in a given 24 hour period, auser 160 may only be permitted 2 transactions. Alternatively, the user160 may be subjected to an amount limit. Such a velocity limit may be apreset amount of funds per day, such as $50. These limitations may beused alone or in combination: for example, the user may be subjected toa limit of $100 per week, up to 5 transactions. If either of theselimits is exceeded, the stored value card may be disabled. If the user160 attempts to use the stored value card, it may be denied.

Other forms of limitations may be applied by the purchaser 115 to thestored value card. A limit may be placed on the types of merchants wherethe user 160 may use the stored value card. For example, the purchasermay restrict the user 160 from using the stored value card forcategories such as entertainment, but permit the use of the stored valuecard for categories such as food or fuel.

These and other limitations may be overridden. For example, thepurchaser 115 may set up the stored value card to not block anytransaction outright. Instead, the transaction may be permitted toproceed as normal; however a message may be sent to the purchaser 115,such as via a mobile device 140. Such a message may present thepurchaser 115 with only information. This information may be “Bill Hoganhas made a purchase of $75 on the stored value card at The Music Storeon Apr. 27, 2009 at 3:27 pm.” In some embodiments, these statements mayconstitute more than information and allow the user 160 to make apurchase outside of the limitations set by the purchaser 115. Forexample, the purchaser 115 may be presented with a question at hismobile device 140, such as: “Bill Hogan is attempting to make a purchaseof $75 at the Music Store. Approve?” A response of “yes” would approvethe transaction; a “no” would deny the transaction. Such a system coulduse SMS text messaging. If an approval or denial is not received fromthe purchaser in a predetermined amount of time, a default response maybe sent to the merchant in response to the request for approval. Thispredetermined response may be set by the purchaser 115.

Each of the entities that the purchaser 115 may purchase a stored valuecard from, including mobile device 140, website 110, agent location 125,call center 165, and merchant 180, communicates with a central server135. This communication may be through a network 145. The network may bea private network or a public network, such as the Internet. Variousentities may use various combinations of networks. For example, a mobiledevice 140 may communicate over a private network, such as a cellularservice provider's network, with information being further routed overthe Internet to communicate with the central server 135.

The central server 135 may be a computer, server, or a group of serversor computers. These computers may be centrally located or distributedover a geographical area. The central server 135 may include acomputer-readable storage medium, such as random access memory or a harddrive. The central server may maintain a database or other record ofmoney the purchaser 115 has placed on a stored value card. This databasemay include information such as a transaction identifier associated withthe stored value card, the purchaser's name, the user's name, the amountstored on the card, and information related to previous transactionsincluding previous transaction dates, times, locations, and themerchants involved in the transaction.

When a purchaser 115 purchases a stored value card, the funds he uses topurchase the stored value card may be stored until used by the user 160.A cash pool 170 may be maintained. The cash pool 170 may be an accountmaintained at a bank of all the money deposited by various purchasersthat has not been used. Funds may be added and subtracted from the cashpool by the central server 135 communicating with a bank server 120.Alternatively, the operator of the central server 135 may maintain allthe funds separate from a bank. The cash pool 170 may consist ofindividual accounts for each stored value card, or may consist of onepool of money with a record maintained at the central server 135 of thefunds associated with each stored value card.

The cash pool 170 represents one way an operator of such a stored valuecard system may profit from offering stored value cards that arerefundable. If a large enough cash pool 170 is present, the interestgained from maintaining the account or accounts with the value for thestored value cards may be significant. It is likely that interest is notreturned to the purchaser 115 or the user 160. Alternatively, as aninducement for purchasing the stored value card, the operator of thesystem 100 may add the earned interest to the value of the associatedstored value card.

A user 160 may use the stored value card with the same or similarentities as where the purchaser may have purchased the stored valuecard. The user 160, who may be in physical possession of the storedvalue card, may have received the card from the purchaser 115, such asin person or via mail. Alternatively, the user 160 may have received thestored value card from the entity from which the purchaser 115 purchasedthe stored value card. In some instances, the user 160 may be thepurchaser 115. Such an arrangement may be especially useful if theuser/purchaser has difficulty maintaining a budget. Allowing such aperson to set conditions on her own spending may help to force her tostay on budget.

The user 160 may use the stored value card for purchases at websites 105and merchants 175. The user may also use the stored value card forwithdrawal of cash from agent locations 130. The user may also interactwith a call center 155 for information purposes. For example, the usermay call the call center 155 operated by the provider of the system 100for information regarding the restrictions or rules placed by thepurchaser on the stored value card or the amount of funds remaining onthe card. The user 160 may be able to make withdrawals from the callcenter 155. The cash may be provided in the form of a check mailed tothe user 160, or the cash may be made available for pick-up at an agentlocation 130. The agent location 125 and the agent location 130 may bethe same or different agent locations. The call center 165 and the callcenter 155 may be the same or different call centers. The merchant 180and the merchant 175 may be the same or different merchants. Finally,the website 105 and the website 110 may be the same or differentwebsites.

When the user 160 uses the stored value card, the entity it is used withmay interact with the central server through a network 150. This network150 may be the same or different network as network 145. As with network145, network 150 may be a public or private network, or may be acombination of various networks functioning in concert to communicatebetween the entity and the central server 135. The central server 135may then determine whether the request by the user 160 should beapproved or denied based upon the amount of value associated with thestored value card and the rules set by the purchaser 115 for the storedvalue card.

If a transaction entered into with the stored value card by the user 160requires approval by the purchaser 115, the request by an entity, suchas 105, 130, 155, or 175, may be sent through the network 150 to thecentral server 135. The central server may then send the request throughnetwork 145 to a device of the purchaser 115, such as mobile device 140.A response from the purchaser 115 may then be transmitted via network145 to the central server 135. The central server may then eitherapprove or deny the request by the user 160 via network 150 to theoriginating entity.

Such a system 100 may allow for the purchaser 115 to receive a refundfor the unused funds associated with the stored value card. The rulesset by the purchaser 115 may specify a date after which the purchaser115 is entitled to a refund of the unused portion of the fundsassociated with the stored value card. Alternatively, the purchaser 115may be able to request all or some of the remaining funds associatedwith the stored value card back at any time. If the user 160 reachessome maximum amount of transactions, the stored value card may bedeactivated with a refund issued to the purchaser 115. The refund may beautomatic or it may be available upon request.

The refund issued from the cash pool 170 to the purchaser 115 may bereturned via the method the stored value card was initially purchasedwith. For example, if the purchaser 115 initially purchased the storedvalue card at an agent location 125, the purchaser 115 may be able toreturn to the agent location 125 and receive the refund. The purchaser115 may be required to present a receipt with an identifier sufficientto either identify the purchaser 115 or the stored value card associatedwith the refund to be issued.

In some embodiments, the purchaser 115 may obtain the refund via adifferent entity than the stored value card was purchased from. Forexample, if the purchaser 115 initially purchased the stored value cardvia a call center 165, the purchaser 115 may be able to receive therefund at an agent location 125 in cash.

The system 100 may be used to execute a large number of differentmethods involving stored value cards. These methods may include thefollowing methods described herein. FIG. 2 illustrates a method 200 forpurchasing a stored value card. A purchaser may purchase 210 a storedvalue card. Such a purchase may occur from an entity such as a merchant,call center, a website, or an agent. These entities may be the sameentities as described in relation to FIG. 1, or may be differententities. The purchase 210 may include the purchaser transferring fundsto the operator of the stored value card system (alternatively referredto as the “issuer”). These funds may be transferred in any form, such aswith cash, credit, debit, check, or personal property.

In addition to an issuer, a retailer may have input on how a storedvalue card may be used. For instance, while an issuer may operate thestored value card system, the retailer may also set parameters governinghow the stored value card may be used. As an example, think of a storebranded gift card. While an issuer may be operating the stored valuecard system, the stored value card may be imprinted with the retailer'slogo. The retailer may restrict use of the stored value card to onlystores or websites operated by the retailer. Despite the restriction ofonly using the stored value card at the retailer, certain functions maybe performed directly between the purchaser or user and the issuer.

Whichever form the funds are transferred in, the issuer may receive 220the funds into a cash pool. This cash pool may be the cash pooldescribed in reference to FIG. 1 or it may be some other cash pool. Thiscash pool may serve to store only funds associated with the purchaser orit may store funds for a plurality of purchasers.

The purchaser may then be asked to set 230 the parameters (alternativelyreferred to as the rules, terms, or limits) of the stored value card.The following are some exemplary rules, terms, limits, and conditionsthat a purchaser may be able to set for the stored value card: a time ordate on which the stored value card expires or is suspended, a categoryof merchant at which the stored value card may be used, a limit to theamount spent per a time period, a limit to the number of transaction pera time period, an automatic refund date, whether to receive approvalmessages, whether to allow overrides (by either the purchaser or theuser), whether to send the purchaser transaction information, whether toallow cash withdrawals, whether to allow deposits to the account fromthe user, and whether identity of the user must be verified. Those withskill in the art will recognize that other terms, limits, conditions,and rules may be placed on the stored value card by the user.

The purchaser may then be provided 240 with a stored value cardidentifier. This may be the same identifier stored on the stored valuecard, or it may be some other identifier that is associated with thestored value card. This identifier may be provided in the form of areceipt. It may be a number, a password, the purchaser's name, thepurchaser's phone number, or any other identifier capable of identifyingthe stored value card purchased by the purchaser. This identifier may beused at a later time for the purchaser to obtain a refund for an unusedportion of funds associated with the stored value card.

The stored value card may then be distributed 250 to the person who willbe the user of the stored value card. This may involve the stored valuecard being given to the purchaser, with the purchaser later giving thestored value card to the user. Alternatively, the entity that the storedvalue card was purchased from may provide the stored value card directlyto the purchaser.

Once the user has possession of the stored value card, an activationprocess may be necessary. Following activation, if necessary, the usermay follow a method 300 illustrated in FIG. 3 for purchasing an item orgood with the stored value card. Such a method may be completed using asystem such as system 100 of FIG. 1. First, a user may present 310 thestored value card to a merchant. If the transaction is via the Internet,the user may present a number stored on the stored value card.

The merchant may then contact 320 the issuer. This may involve sending arequest for approval of the transaction. This may occur electronically,for example, from a point-of-sale device to a host computer system ofthe stored value card issuer. Alternatively, it may involve the merchantcontacting the issuer via telephone or the Internet. In someembodiments, the merchant may be contacted via the same network used tosettle credit card transactions or through an automated clearing house(ACH) transaction.

If the transaction occurs via a credit card settlement network,typically when a merchant requests a payment, the merchant contacts anacquirer. The acquirer is typically a bank. The acquirer verifies theaccount number attached to the transaction card, the transaction type,and the amount with the issuer. At a later time, often in the form of abatch transaction, the issuer will be debited for the transaction amountby the acquirer.

Following a request for approval being sent, the issuer determines 330if the purchase complies with the parameters of the stored value card.This may include determining whether there are sufficient fundsassociated with the stored value card to complete payment for therequested transaction. The parameters of the stored value card mayfurther comprise the parameters set by the purchaser. Further, someparameters may be set by a retailer associated with the stored valuecard.

If the issuer determines that the purchase complies with the rules,terms and limits of the stored value card, the purchaser may becontacted 340. This may be due to a parameter set by the purchaser. Ifthe issuer has already determined that the purchase complies with theparameters of the stored value card, the information sent to thepurchase may be for information purposes only. Such information mayinclude the time, date, location, and amount of the transaction.Alternatively, the purchaser may receive no contact following arequested transaction, or the information may be provided on only adaily, weekly, or monthly basis.

The cash pool may then be debited 350 for the amount requested by themerchant. Alternatively, the cash pool may be debited 350 at some timein the future, or a hold is placed upon the funds necessary to completethe transaction. Next, the issuer sends 360 approval to the merchant.Again, this approval may be sent electronically, or it could be givenverbally by a representative of the issuer. Upon receiving thisapproval, the purchase by the user may be complete.

Returning to step 330, if the issuer determines that the transactiondoes not comply with the parameters of the stored value account, thetransaction may be denied. The transaction may be denied based oninsufficient funds in the cash pool associated with the stored valuecard. Alternatively, the transaction may be denied based on theparameters set by the purchaser. Depending on the aspect of thetransaction that does not comply with the parameters set by thepurchaser, the purchaser may have the opportunity to override the denialof the transaction. In some embodiments, parameters are also set by theissuer. These parameters may or may not be able to be overridden.

The issuer may contact 370 the purchaser via any number of methods. Thismay include a text message asking whether the purchaser wishes tooverride the rejection and allow the transaction. Other possible waysthe issuer may contact the purchaser include a phone call, or an email.This may be especially useful in emergency situations. For example, apurchaser may set a limit of $100 per day. However, the user may beinjured and required to make a payment of $500 to a hospital before itwill render services to the user. The purchaser may wish for such atransaction to be approved. With an override system, the purchaser mayhave the opportunity to allow such a transaction to be approved.

If the issuer contacts 370 the purchaser via text message, the textmessage may pose a “yes” or “no” question, such as “Do you want toapprove a transaction for $270 requested by User at ‘Jim's Tire Shop’?”The purchaser may then respond 380 “yes” to override the denial. If thepurchaser responds “yes” within a predefined period of time, the issuermay send 390 an approval to the merchant requesting the transactions. Ifthe purchaser responds “no,” the issuer may deny 395 the request sent bythe merchant. If no response is received from the purchaser within apredefined amount of time, the issuer may either approve or deny therequest based on a default selection either defined by the issuer or thepurchaser. A more detailed description of the approval process will bedetailed in FIG. 6.

Following a parameter or rule of the stored value card being met, thepurchaser may be entitled to a refund for unused funds associated with astored value card. Such a refund may be issued by a method 400 of FIG. 4performed with a system such as system 100 of FIG. 1. The issuer maythen make a determination 420 whether the purchaser is entitled to arefund. In some instances, the funds that are remaining in the cash poolassociated with the stored value card may be ceded to the stored valuecard system provider or may escheat to the state. Once an issuerdetermines 410 that a parameter has been met, the stored value card maybe deactivated 430 and 480. The issuer may also contact 440 and 490 thepurchaser. This may be to inform the purchaser that he is eitherentitled to a refund or not entitled to a refund.

If the purchaser is entitled to a refund, the purchaser may have theopportunity to identify 450 a preferred method of receiving the refund.This may include cash, a check, a refund to his credit card, or anyother method of payment. The purchaser may specify his preferred methodof refund at the time of purchasing the stored value card. In someembodiments, when the issuer contacts 440 the purchaser, the issuerinquires as to the method of refund desired by the purchaser.

The issuer may then refund 470 all or a portion of the funds associatedwith the stored value card to the purchaser. If the purchaser desires arefund in the form of a check, or a deposit to an account, the refundmay be issued remotely. The refund may be issued by the issuer, or maybe issued by an associated retailer. However, if the refund is requestedin cash, additional steps may be required for the purchaser to receivehis refund.

FIG. 5 illustrates a method 500 that may be executed if the purchaserdesires a cash refund. In method 500, the purchaser first identifies 510cash as the desired form of refund. This may occur during a step 450 ofmethod 400 illustrated in FIG. 4 or some other method. The purchaser mayindicate cash as the desired form of refund to the stored value cardissuer via telephone, at an agent location, via the Internet, or anyother suitable method. The purchaser may be required to produce someform of identifier to the issuer to prove that he is the purchaser ofthe stored value card. If the request is made at a location other thanat an agent of the stored value card issuer, a transaction identifiermay be provided 520 to the purchaser. Alternatively, the purchaser'sname may serve as the transaction identifier or any other identifiercapable of accurately identifying the purchaser. In some embodiments, amoney transfer control number is used as the identifier. If the requestfor cash is made directly at an agent location, a transaction identifiermay not be necessary. Depending on the stored value card, a cash refundmay be issued directly by the issuer, such as at agent locations of theissuer, or at locations of an associated merchant. In some embodiments,the purchaser may have the option of receiving the refund from eitherthe retailer or the issuer.

The purchaser may then present 530 the transaction identifier at anagent location. The agent may not be aware that the purchaser isreceiving a refund for a stored value card as opposed to a moneytransfer. The agent may then transmit 540 the transaction identifier tothe issuer. Based on this information, the issuer may then transmitrefund information 550 to the agent. This refund information may includeinformation such as: the amount of a refund the purchaser is entitledto, usage data of the stored value card, the date and time of eachpurchase, the final balance of funds on the stored value card, andcoupons or deals for future stored value card purchases. Finally, theagent provides 560 the cash refund to the purchaser.

While the method 500 discusses the cash being received by the purchaser,the purchaser may designate another person as the recipient of the cash.For example, this may include the purchaser giving another person thetransaction identifier. With the transaction identifier, the otherperson may be able to receive the refund at an agent location just asthe purchaser could. Alternatively, it may involve informing the storedvalue card issuer that a designee will be receiving the cash instead ofthe purchaser. In some embodiments, a third party recipient of therefund is identified at the time the purchaser purchases the storedvalue card and sets the terms, limits, and conditions of the storedvalue card. The purchaser may designate a charitable foundation, churchgroup, or fraternal organization as the recipient of any future refundthat may be due.

As an example, the purchaser, an uncle, may purchase his nephew a $100stored value card for the nephew's birthday. The uncle knows that hisnephew tends to misplace or forget gifts shortly after receiving them.In order for the $100 not to be wasted, the uncle sets a parameter onthe stored value card that if the $100 isn't used within 90 days, theremaining funds associated with the card will be donated to the RedCross. The nephew may be unaware of this condition, or may only be awareof the expiration date. Further, the uncle may tell or provide hisnephew all of this information, so that the nephew may be encouraged tonot waste the money on an item he does not truly need, knowing that themoney is not wasted and will be used for a good cause. If the expirationdate is reached, the issuer may automatically mail a check to the RedCross in the uncle's name, or may make an electronic payment to the RedCross. The uncle may receive a notice of the amount of funds that wasultimately given to the Red Cross.

FIG. 6 details a method 600 previously mentioned in passing: an issuerreceiving approval from a purchaser. Such a method may be used in method300 of FIG. 3. For example, in steps 340 and 370, the issuer contactsthe purchaser. The method 600 of FIG. 6 may be used in such a step, ormay be part of some other method. Alternatively, the method 600 maystand alone as a separate process. First, the issuer may determine 610if the purchaser should be contacted. This may happen following atransaction of a user, prior to approving a transaction of the user,when the funds associated with the stored value card reach a certainlevel, after a certain number of transactions, after a predefined timeperiod, as a recurring message once every time period, whenever the usermakes a cash withdrawal, whenever the user attempts to purchase goods orservices that are part of a certain category of purchases, or when arefund is due. Those with skill in the art will recognize that theissuer contacting the purchaser may be desirable in many othercircumstances also.

The issuer may need to determine 620 the purchaser's contact method. Thecontact method may be a default method selected by the issuer, or may bea method selected by the purchaser. Possible methods include email, textmessage, instant message, phone call, or mail. Obviously, if animmediate response is desired, certain methods will be distinctly fasterthan others. In some instances, the purchaser may receive a message viamore than one method. Based on the determination 620, the issuer sends630 a message via the preferred method or methods to the purchaser.

If the message is for information purposes only, the issuer may not waitfor a response or any form of confirmation. However, if a response isnecessary, based on the method of communication, such as for an approvalof a transaction, the issuer may wait up to a predetermined amount oftime for a response 640. Such a wait time may be beneficial to eachparty involved, considering the approval process: a wait time allows thepurchaser a time to respond; however the transaction will not beunnecessarily detailed because a default response will be sent by theissuer if no response is received from the purchaser. From the point ofview of the user, it may be impossible to determine if an approval ordenial was made by the purchaser or was the result of a defaultselection by the issuer. Further, the user may not even be aware thatthe purchaser has been contacted.

If a response is received 655 from the purchaser regarding approval of atransaction, the response may be sent 665 to a merchant. If the messagewas regarding a refund due to the purchaser, the response may not beforwarded. In some embodiments, responses received from the purchasermay be forwarded to the user. Such forwarding may be useful when thepurchaser has changed the rules or limits associated with the storedvalue card.

If a response was not received 645 from the purchaser in thepredetermined amount of time, the issuer may determine 650 a defaultresponse. The default response may be set by the purchaser, or may beset by the issuer. Again, if the message was regarding the approval of atransaction, the default response may be sent 660 to a merchant. If themessage was not time critical, the issuer may wait and resend themessage after a period of time.

The previous embodiments have discussed a situation where the purchaserdeposits funds into a cash pool to be associated with a stored valuecard. However, in some embodiments, there may be no cash pool. Rather, adirect withdrawal from a funding source of the purchaser may be madeeach time a user is approved for a transaction. FIGS. 7 and 8 illustratesuch methods. Method 700 and method 800 of a transaction may beimplemented using the same or a similar system to system 100 of FIG. 1.Alternatively, this method may be implemented using a different systemstructure. To differentiate between stored value card and transactioncards of FIGS. 7 and 8, the cards will be referred to as “debit cards.”It should be understood that besides a debit card drawing funds from apurchaser's funding source as opposed to a prepaid cash pool, the debitcard may function similarly to a stored value card in the mannerspreviously described.

The method 700 of FIG. 7 details the purchasing of a debit card by apurchaser. Here, a purchaser, alternatively referred to as a funder,purchases 710 a debit card. In some instances, such a debit card may beprovided free of charge, or there may be a sign-up fee. The issuer mayalso receive 720 funding information. The funding information mayinclude the purchaser providing information such as a bank accountnumber, a routing number, a credit card number, and a billing address.The account the purchaser associates with the debit card may be held bythe issuer or some other institution or bank. The account may be acredit account, checking account, brokerage account, or other designatedconsumer account.

The purchaser may then set 730 the parameters of the debit card. Theserules may be similar to rules previously described regarding a storedvalue card. An identifier may be provided 740 to the purchaser. Thisidentifier may be used to interact with the debit card or debit cardaccount at a later time, such as changing the associated rules, terms,limits, or bank account. Next, the debit card may be distributed 750 toa user. In some instances, the purchaser may be the user. The debit cardmay be provided to the user by either the purchaser or the issuer. Ifthe purchaser and the user are located in different countries, it may beconvenient to have the user pick up the debit card at a local agentlocation.

Once the user has possession of the debit card or of an identifiernumber associated with the debit card he may be able to begin makingtransactions. FIG. 8 illustrates a method 800 of a user completing atransaction with a debit card. The user may present 820 a debit card fora purchase. If the transaction is in person, this may involve physicallyproviding the debit card to a merchant or swiping the debit card at apoint-of-sale. If the transaction is being performed remotely, such asvia the Internet, a number or other identifier from the debit card maybe used.

The merchant may then contact 830 the issuer for approval. Beforeproceeding the merchant may wait for a response message of approved ordenied from the issuer. The issuer, upon receipt of this request, maydetermine 840 if the issuer has sufficient funds to pay the merchant forthe amount of the request. The amount debited may be increased by a setamount or percent as a transaction fee due to the issuer. If there aresufficient funds in the account or other funding source specified by thepurchaser, the issuer may then determine if the request complies withthe parameters of the debit card set by the purchaser.

If the request complies 850 with the parameters set by the purchaser theissuer may debit the purchaser's account for the amount of the requestand receive 860 the funds, plus a possible transaction fee. The debit offunds may be a form of electronic funds transfer (EFT) The debit mayoccur in the form of an automated clearing house debit. Once the issuerhas received the request amount, the issuer may send 870 an approval tothe merchant.

If the issuer determines 840 that the purchaser does not have sufficientfunds to pay the merchant, the issuer may send the merchant a denial 880for the requested transaction. Also, if the issuer determines 850 that arequest does not comply with the parameters set by the purchaser, thepurchaser may have the ability to override 890 the denial. Such anoverride may be executed in a similar manner to method 600 of FIG. 6.Depending on the outcome of the override, the request may still bedenied with the issuer sending 880 a denial to the merchant. If thepurchaser approves the override, the issuer may then receive 860 fundsfrom the purchaser's account. The issuer may then send an approval 870to the merchant. A similar method may be executed for a cash request bythe user.

The payment may be sent to the merchant through an automated clearinghouse (ACH) network. The ACH network operates to clear debits andcredits electronically, rather than through the physical movement ofchecks. The ACH system uses batch processing, store and forwardoperations, and does not typically process payments individually.Originating depository financial institutions (ODFI) submit ACH paymentfiles to the ACH operators. The ACH operators accumulate these files,sort them by destination, and transmit them to receiving depositoryfinancial institutions (RFDI) for application to customer accounts atpredetermined times throughout the business day. The ACH system providessignificant economies of scale compared to individual wire transfers,and is faster and more accurate than paper-check processing, and thus isan efficient electronic payment alternative to checks and wiretransfers.

This description provides example embodiments only, and is not intendedto limit the scope, applicability, or configuration of the invention.Rather, the ensuing description of the embodiments will provide thoseskilled in the art with an enabling description for implementingembodiments of the invention. Various changes may be made in thefunction and arrangement of elements without departing from the spiritand scope of the invention. For example, well-known circuits, processes,algorithms, structures, and techniques have been shown withoutunnecessary detail in order to avoid obscuring the embodiments.

Thus, various embodiments may omit, substitute, or add, variousprocedures or components as appropriate. For instance, it should beappreciated that in alternative embodiments, the methods may beperformed in an order different from that described, and that varioussteps may be added, omitted, or combined. Also, features described withrespect to certain embodiments may be combined in various otherembodiments. Different aspects and elements of the embodiments may becombined in a similar manner.

It should also be appreciated that the preceding systems, methods, andsoftware may individually or collectively be components of a largersystem, wherein other procedures may take precedence over or otherwisemodify their application. Also, a number of steps may be requiredbefore, after, or concurrently with the following embodiments.

Furthermore, embodiments may be implemented by hardware, software,firmware, middleware, microcode, hardware description languages, or anycombination thereof. When implemented in software, firmware, middleware,or microcode, the program code or code segments to perform the necessarytasks may be stored in a computer-readable medium such as a storagemedium. Processors may perform the necessary tasks.

What is claimed is:
 1. A method comprising: receiving, with a computersystem, an indication of an amount of funds received from a first party;associating, by the computer system, at least a portion of the amount offunds with an identifier, wherein: the identifier is used by a secondparty to make payments to at least a third party; and the first party,the second party, and the third party are different entities; receiving,by the computer system, two or more parameters that govern use of theidentifier, wherein at least one of the two or more parameters includesa time limit after which the identifier is deactivated; determining, bythe computer system, whether at least two parameters of the two or moreparameters have been satisfied, wherein one of the at least twoparameters includes the time limit after which the identifier isdeactivated; and providing, by the computer system, based on adetermination that at least two or more parameters have been satisfied,a refund to the first party of at least a portion of the fundsassociated with the identifier that were not spent by the second party.2. The method of claim 1, further comprising: receiving, at the computersystem, an indication from the first party specifying a method ofreceiving the refund.
 3. The method of claim 1, wherein providing therefund comprises: providing, by the computer system, a transactionidentifier to the first party, wherein the transaction identifier isredeemable for the refund.
 4. The method of claim 1, further comprising:receiving, at the computer system, a debit request indicating the secondparty desires to make a payment using the identifier; requesting fromthe first party, by the computer system, an approval for the payment tobe processed; and sending, from the computer system, a default responseto the debit request upon the approval not being received from the firstparty within a predetermined amount of time.
 5. The method of claim 1,wherein: funds received from the first party comprise an allocation offunds from an account of the first party; and the refund comprises areallocation of funds from the account of the first party.
 6. The methodof claim 1, wherein: the identifier is associated with a stored valuecard; and the identifier being used by the second party comprises thesecond party using the stored value card.
 7. The method of claim 1,further comprising: providing, by the computer system, the identifier tothe second party via a mobile device.
 8. The method of claim 1, wherein:at least one parameter comprises receiving a request from the firstparty for the refund.
 9. The method of claim 1, wherein: the one or moreparameters are received from a retailer.
 10. The method of claim 9,wherein: at least one parameter is that the identifier is onlyredeemable at the retailer.
 11. A system comprising: a computer systemfor at least: receiving an indication of an amount of funds receivedfrom a first party; associating at least a portion of the amount offunds with an identifier, wherein: the identifier is used by a secondparty to make payments to at least a third party; and the first party,the second party, and the third party are different entities; receivingtwo or more parameters that govern use of the identifier, wherein atleast one of the two or more parameters includes a time limit afterwhich the identifier is deactivated; determining whether at least twoparameters of the two or more parameters have been satisfied, whereinone of the at least two parameters includes the time limit after whichthe identifier is deactivated; and providing, based on a determinationthat at least two or more parameters have been satisfied, a refund tothe first party of at least a portion of the funds associated with theidentifier that were not spent by the second party.
 12. The system ofclaim 11, wherein: funds received from the first party comprise anallocation of funds from an account of the first party; and the refundcomprises a reallocation of funds from the account of the first party.13. The system of claim 11, wherein: the identifier is associated with astored value card; and the identifier being used by the second partycomprises the second party using the stored value card.
 14. The systemof claim 11, wherein the computer system is further for at least:providing the identifier to the second party via a mobile device. 15.The system of claim 11, wherein: at least one parameter comprisesreceiving a request from the first party for the refund.
 16. Anon-transitory computer readable medium having instructions thereon, theinstructions executable by a processor for at least: receiving anindication of an amount of funds received from a first party;associating at least a portion of the amount of funds with anidentifier, wherein: the identifier is used by a second party to makepayments to at least a third party; and the first party, the secondparty, and the third party are different entities; receiving two or moreparameters that govern use of the identifier, wherein at least one ofthe two or more parameters includes a time limit after which theidentifier is deactivated; determining whether at least two parametersof the two or more parameters have been satisfied, wherein one of the atleast two parameters includes the time limit after which the identifieris deactivated; and providing, based on a determination that at leasttwo or more parameters have been satisfied, a refund to the first partyof at least a portion of the funds associated with the identifier thatwere not spent by the second party.
 17. The non-transitory computerreadable medium of claim 16, wherein: funds received from the firstparty comprise an allocation of funds from an account of the firstparty; and the refund comprises a reallocation of funds from the accountof the first party.
 18. The non-transitory computer readable medium ofclaim 16, wherein: the identifier is associated with a stored valuecard; and the identifier being used by the second party comprises thesecond party using the stored value card.
 19. The non-transitorycomputer readable medium of claim 16, wherein the instructions arefurther executable for at least: providing the identifier to the secondparty via a mobile device.
 20. The non-transitory computer readablemedium of claim 16, wherein: at least one parameter comprises receivinga request from the first party for the refund.